nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2019‒12‒23
four papers chosen by

  1. Assessing the efficacy of Audio Media Technology in enhancing Financial Literacy Knowledge of Radio Listening Club Members. A case of selected Rural Communities in Western Uganda By Mark Kaahwa; Chang Zhu; Moses Muhumuza; Rodgers Mutyebere; Robert Mawenu
  2. University teaching methods and financial literacy By Anna Polednáková
  3. Designing Fiqh Mu'āmalāt Learning Program to Guide Secondary Students on Achieving Financial Literacy By Setiawan, Adib Rifqi
  4. Why Are So Many Households Unable to Cover a $400 Unexpected Expense? By Anqi Chen

  1. By: Mark Kaahwa (Vrije universiteit Brussels, Att: Mark Kaahwa); Chang Zhu (Vrije universiteit Brussels); Moses Muhumuza (Mountains of the Moon University); Rodgers Mutyebere (Mountains of the Moon University); Robert Mawenu (Mountains of the Moon University)
    Abstract: The principal aim of this study was to assess the efficacy of audio media technology (AMT) in the form of radio broadcasts and audio CDs in equipping Radio Listening Club Members (RLCMs) with financial literacy knowledge (FLK). Although audio media technology is acknowledged as the most important medium for communicating with rural populations, it is not known whether it can assist RLCMs to increase their FLK. A total of 939 participants from Rwenzori region in western Uganda participated in this study which involved a pre-test, an intervention, and a post-test experience. Pre-test analysis identified two cohorts, one cohort consisted of 157 members who were found with relevant knowledge of financial literacy and the other cohort consisted of 782 members who were found with low levels of knowledge even on the most basic aspects of financial literacy. The first cohort was excluded from the study as this research could not add much to their knowledge. Data was collected using a structured questionnaire before and after AMT intervention. We analysed the knowledge levels of respondents before and after in the following financial literacy themes; personal financial management, saving management, loan acquisition and management, investment management and financial service providers and making payments. Results showed that the use of AMT in financial literacy has a positive causal impact. For most of the items under these scales, they showed an increase in means after respondents received the AMT intervention. An indication that although they had poor initial knowledge on most financial literacy aspects, their knowledge significantly changed after attending the AMT training. Results further revealed that the listenership at the RLCs and listenership at individual level showed a statistically significant difference only in three areas; savings, investment, and personal financial management. Members who listened from the RLCs appeared to have more knowledge in financial literacy on savings, investment, and personal financial management, unlike their counterparts who listened individually. Moreover, apart from age other demographic characteristics such as gender and level of education did not correlate with knowledge uptake regarding financial literacy. Based on these findings thus, we conclude that well designed AMT in the form of radio broadcasts and audio CDs is an effective and cost-effective mechanism through which knowledge levels of community people regarding financial literacy can be enhanced.
    Keywords: Financial literacy, Radio Listening clubs, audio media technology, information tool, rural communities.
    JEL: I29
    Date: 2019–10
  2. By: Anna Polednáková (University of Economics in Bratislava, Faculty of Business Management, Department of Business Finance)
    Abstract: Education and general literacy are one of the basic pillars of the company. Analyzes showed us that financial literacy in Slovakia is very low. According to recent analyzes, primary and secondary school pupils have low financial literacy. A similar situation exists in universities. Economic trends prepare students for corporate financial management, who should have significantly better results in financial literacy than non-financial specializations, but this has not been confirmed in the analyzes. It is therefore necessary to find new teaching methods that will increase financial literacy and will increase students' motivation to increase financial literacy as a basis for further study of the financial subjects of the Financial Management program to be able to apply financial management tools and methods in the company.
    Keywords: financial literacy, financial market, financial management, teaching methods, indebtedness, bankruptcy.
    JEL: I21 G32
    Date: 2019–10
  3. By: Setiawan, Adib Rifqi
    Abstract: The goal of this work is designing fiqh mu’āmalāt learning program to guide secondary students on achieving financial literacy, that is exclusively based on literature review, judgement expert, and internal consistency.
    Date: 2019–11–01
  4. By: Anqi Chen
    Abstract: Despite a strong economic recovery, about 40 percent of households in 2017 still said they would have trouble paying for a $400 unexpected expense. When households are operating under such a tight budget, building a nest egg for retirement can be challenging. This brief uses data from two Federal Reserve surveys – the Survey of Household Economics and Decisionmaking (SHED) and the Survey of Consumer Finances (SCF) – to understand why so many households say they are unable to cover a relatively small unexpected expense. The discussion proceeds as follows. The first section uncovers a difference between what households say they can afford and what they actually have in their checking/savings accounts. The second section shows that many households, despite having enough in these accounts, may be unable to weather small financial surprises due to unpaid credit card debt. The third section examines whether financial literacy is the problem and finds that it is not. The fourth section uses latent class analysis to examine the characteristics of these vulnerable households. The final section concludes that credit card balances and installment loans (e.g., mortgages, student loans) may be seriously constraining household budgets and are the likely reason that so many middle and higher-income households feel cash-strapped.
    Date: 2019–07

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